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The Asian Development Bank (ADB) has announced that it will invest $70 billion in energy and digital infrastructure by 2035 to connect power grids across Asia and the Pacific, expand cross-border electricity trade, and improve broadband access in the region.

“Energy and digital connectivity will shape the region’s future,” said ADB President Masato Kanda. “These two initiatives will build the systems needed for power grid expansion, competition, and connectivity in Asia and the Pacific. By linking cross-border power grids and digital networks, we can reduce costs, create opportunities, and provide millions of people with reliable electricity and digital access.”

Under the Pan-Asia Power Grid initiative, national and subregional power systems will be interconnected, allowing renewable energy to flow across borders. The Asia-Pacific Digital Highway is also expected to bridge gaps in digital infrastructure and enable the region to benefit from AI-driven growth.

Through the Pan-Asia Power Grid initiative, ADB will collaborate with governments, utilities, the private sector, and development partners to mobilize $50 billion for cross-border energy infrastructure by 2035, supporting large-scale use of renewable energy.

The initiative will focus on transmission lines and grid integration, including cross-border transmission lines, substations, storage, and grid digitalization.

It will also support energy generation linked to electricity trade, including renewable energy export projects, regional renewable hubs, and hybrid generation-storage facilities.

By 2035, ADB aims to integrate around 20 gigawatts of renewable energy across borders, connect 22,000 circuit-kilometers of transmission lines, improve energy access for 200 million people, create 8.4 million jobs, and reduce emissions in the regional energy sector by 15 percent.

ADB stated that about half of the $50 billion for this initiative will come from its own resources, while the rest will be mobilized through co-financing, including private sector participation.

The bank will also provide up to $10 million in technical assistance to help harmonize regulations, adopt common technical standards, conduct feasibility studies, and advance large-scale projects.

kantipur